For homeowners, renovation is straightforward – do what you like, as long as it’s within budget. Investors, however, need to balance between the bottom line and a unit that’s pleasing to tenants (if they’re landlords). As such, one of the most common trip-ups comes from renovation: too much or too little, and an otherwise sound investment might go wrong. Here are the key considerations, when speaking to your contractor:
Things to do:
- Use the right loan type, if it’s necessary
- Source for fixtures outside of Singapore
- Base your renovations on the intended tenants
- Weigh your renovation decisions against the security deposit
- Renovations that are done for maintenance may be tax-deductible
- Keep your renovations and theme generic
- Use the right loan type, if it’s necessary
If you can, we advise you to save up, and not use loans for renovations. The interest will eat into your overall yield and returns.
If you have no choice though, make sure you use the
correct loan type....
